In March 2012 the Government decided not to seek an extension of Ireland's exemption from EU directives requiring domestic competition in rail services. In light of this decision, it is likely that competition will be introduced in the rail market in Ireland in the coming years. The exemption expires on March 14th 2013. The reason the exemption was in place is because Irish rail networks have unique geographic and technical features which potentially limit opportunities for competition from elsewhere. Plans have been announced for a consultation process which will consider how best to restructure Irish Rail in light of this decision.
Ireland only EU country with a single rail operator
There will be a requirement to establish a separate body to determine charges for access to the railway system, and how capacity should be allocated. The consultation process will be wide-ranging, and will include Government partners and other stakeholders such as Iarnród Éireann.
Ireland is the only country in the EU which has been allowed to retain a single operator which regulates, operates and maintains its mainline rail network. However, EU law supports greater competition and freer access to the rail network sector across Europe, principally in the area of freight.
Consultation process
How, and when, access to the rail market in Ireland is opened is uncertain, though the recent decision by the Government would appear to suggest that competition may be introduced in the coming years. Initially, however, a consultation process will need to be engaged in, which will provide stakeholders with the opportunity to make submissions. Stakeholders should avail of this opportunity in order to best communicate their interests going forward.
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